Multiple current account advice

Pixiefish

Hi, I'm a born-again newbie (used to be a little active on here in a previous life several years ago!). I am looking for a little reassurance/advice about operating multiple current accounts, as I've never done this before and it's a little daunting!

I currently just have First Direct 1st account (switched from RBS around 2 years ago, to get the £100 incentive, and have had no problems with them at all). I also have an e-saver with them and have just opened a regular saver.

After reading up on the site and doing some homework, I am thinking of:

- Switching to a Halifax Reward account, and then using this as my main current account, to have salary paid into and for cash withdrawals.

- Funding the First Direct 1st account with £300/month from Halifax in order for this to go into my FD regular saver, and just keeping £1 in the FD e-saver

- Opening a Santander 123 account, and setting up all household bills to be paid from it, funding this from the Halifax, with (a) enough to cover the bills and (b) any leftovers at the end of the month (ie using this account as a dual purpose bill paying account/instant access savings account).

So my questions that I'm not quite sure of are:

1. Will this arrangement satisfy the conditions of keeping all 3 current accounts?

2. Could I fund the FD regular saver directly from the Halifax account, or does that money need to go via the FD 1st account?

3. How long should I leave between applying for the Halifax account and then applying for the Santander one? will 'switching' again quickly affect the £100 incentive from Halifax?

Thanks in advance!

AlwaysLearnin

FD and Halifax Reward don't pay credit interest, therefore you could be better to use the Santander account as your 'working' account, as you'll then have the maximum balance in there earning interest.

Basically use the FD acct for the reg saver and the Halifax just to pass funds through to get the £5 (you'll need two DD's on Halifax though)?

You don't have to switch again for Santander either, but use a cashback site for the incentive

Pixiefish

AlwaysLearnin wrote: »

Basically use the FD acct for the reg saver and the Halifax just to pass funds through to get the £5 (you'll need two DD's on Halifax though)?

Would standing orders to the other accounts work instead of direct debits? I do have a Halifax Clarity credit card, although only use it for spending when abroad so some months there is no payment required, does anyone know if that would 'count' as a direct debit if there is no money requested in a given month?

AlwaysLearnin wrote: »

You don't have to switch again for Santander either, but use a cashback site for the incentive

That's good to know, thanks.

AlwaysLearnin

You need two different DD's on the Halifax acct

http://www.halifax.co.uk/bankaccounts/current-accounts/reward-current-account/

See 'small print' at the bottom. I believe they have to be active monthly.

You're better to keep the cashback DD's for Santander. You can however find ways of satisfying the requirement without losing out on cashback, for example

https://forums.moneysavingexpert.com/discussion/4168667

innovate

Remember the 123 doesn't pay any interest on balances below £1K. The FlexDirect is much better in that respect - though you don't get any cashback for DDs, and the great rate (5%) only lasts a year. There is a cashback deal on Quidco for it if you switch to it.

CKhalvashi

I've managed to get 2 Halifax £5 accounts, and have 3 Lloyds Vantage accounts, so I keep all 3 Lloyds accounts topped up with £5k, passing the money between all 3, and in/out to Halifax on the same day, using Tesco and Santander eSaver to collect the interest up.

Then there's a Santander 123 account with (I think currently) about £22k in there at the moment, which has all the household bills go out. We're taking around £150 in cashback, and another £40 (which does have more tax to pay) in interest from these accounts each month, as it's the account that our rent payments go into/mortgages go out of. Anything over £24k in this account at the end of each month goes into our 2.75% ISAs, then into Martin's top buys.

We're creaming around another £60 a month from the 123 CC, so it really is a good account to have.

We're on nearly £4000 a year, which after the initial nightmare of setting it up, is free money for a few hours work!

CK

C_Mababejive

switch to santander 123 via quidco for £55. Question re the 123 account,,does the £24 per year fee only apply to the credit card or is it 24 for the current account AND 24 for the credit card?

ColdIron

£24 each I believe

pauljoecoe

I have FD account as I have a offset mortgage and use their regular save at 8% (now 6%) my salaryis paid into this.

I have a halifax reward which has 2 tiny DD set up on it to satisfy that rule and I transfer £1000.00 in each month from FD and then transfer £900 back again a few days later to satisfy the minimum amount to be paid in.

I have a Santander 123 account which all the direct debits that attract cash back are paid from. Again I transfer the minimum amount neccesary in and leave enough for the DD and transfer remains back.

I am in the process of opening a nationwide flex direct. To leave £2500 in to get 5% Interest. Again the minimum amount will be transferred from FD and back again to satisfy the paying in conditions.

fort

Although the no credit card fee for the first year if you also have a 123 current account

innovate

CKhalvashi wrote: »

We're taking around £150 in cashback, and another £40 (which does have more tax to pay) in interest from these accounts each month

How do you manage £150 cashback a month?